(Reuters circulated the following on January 27, 2009.)
CALGARY — Canadian Pacific Railway Ltd (CP.TO) reported better-than-expected fourth-quarter earnings, buoyed by higher freight volumes and a stronger dollar.
Canada’s No 2 railway recorded a net profit of C$200.6 million ($163.9 million), or C$1.29 a share, compared with C$342.3 million, or C$2.21 a share, a year ago.
Excluding items, the company earned C$1.15 a share.
Revenue rose 9 percent to C$1.30 billion in the quarter, while freight revenue was up 10 percent. Analysts on average were expecting earnings of C$1.11 a share, before special items, on revenue of C$1.20 billion, according to Reuters Estimates.
Canadian Pacific, which operates across Canada and in the northern United States, said the impact of a stronger U.S. dollar in the fourth quarter increased both freight revenue and operating expenses that were denominated in U.S. currency.
The railroad operator expects contributions to all of its defined benefit pension plans to increase to a range of C$150 million to C$195 million for 2009, from C$95 million in 2008.
In November, the company had said it was not ready to provide earnings or revenue forecasts for 2009 due to the current economic uncertainty.
Canadian Pacific shares closed at C$37.70 Monday on the Toronto Stock Exchange. ($1=1.224 Canadian Dollar)